For Immediate Release
Chicago, IL – June 13, 2019 - Stocks in this week’s article are ABM Industries (ABM - Free Report) , Commercial Metals Company (CMC - Free Report) , Best Buy Company (BBY - Free Report) , C&J Energy Services (CJ - Free Report) and Dick's Sporting Goods (DKS - Free Report) .
Recent Analyst Upgrades Add Lustre to These 5 Stocks
Investors aim to design a portfolio of stocks that will fetch them handsome returns. However, the task is easier said than done. Given the time constraint that we all face, it is not possible for individual investors to have thorough knowledge about all stocks.
In the absence of proper guidance, identifying a winning stock is akin to searching for ‘a needle in a haystack’, for an investor. The proper guidance, in this respect, comes from brokers, who are deemed experts, equipped with vast knowledge and know how as far the field of investing is concerned.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Earnings Estimate Revisions – A Proper Pointer
Broker ratings are backed by sound logic. Brokers not only scrutinize the publicly available financial documents but also attend company conference calls and other presentations. Naturally, it is in the best interest of investors to pay heed to such well-researched information as they aim to generate maximum returns from their portfolio.
Since brokers closely follow the stocks in their coverage, they revise earnings estimates only after carefully examining the pros and cons of an event for the concerned company. In fact, a rating upgrade or downgrade by brokers has the potential to influence the price of the stock.
Naturally, when investors see brokers revising their estimates or recommendation on a stock, they often assume that there is something in the stock that has attracted analyst attention. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.
Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/428335/recent-analyst-upgrades-add-luster-to-these-5-stocks
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